“A course or method of action selected among alternatives that guides present and future decisions”

“A decision coupled with the authority to act on it”

French colonial government in Honoi paying locals to exterminate rats → led to the farming of rats and increased rat problem

Carbon credits grant nations the right to emit gases that contribute to global warming. Developed nations are able to earn carbon credits by investing in emissions-reduction projects → For greenhouse gases trifluoromethane and sulfur hexafluoride, the value of the credits obtained can exceed the cost of destroying these gases in the production process, creating a ‘perverse’ incentive to increase production so that credits can be claimed.

Let’s examine a couple of examples of policy to protect biodiversity and their incentive structures

One of the most important pieces of legislation on biodiversity in the US

The Endangered Species Act (1973): “The purpose of the ESA is to protect and recover imperiled species and the ecosystems upon which they depend”

One of the most important pieces of legislation on biodiversity in the US

There are > 2,200 species listed as endangered or threatened in the US

In total there have been 94 species de-listed
62 due to recovery
11 due to extinction
21 due to “original data in error”

One of the most important pieces of legislation on biodiversity in the US

The ESA also interfaces with the 175-nation agreement to prevent species extinctions due to international trade

CITES:
C.onvention on I.nternational T.rade
in E.ndangered S.pecies
of Wild Fauna and Flora

What incentive structure does the ESA establish?

What are some perverse incentives that the ESA might unintentionally establish?

What incentive structure does the ESA establish?

What are some perverse incentives that the ESA might unintentionally establish?

• Pre-emptive habitat destruction (to prevent endangered species from establishing, e.g., harvesting trees early so they don’t become old enough to become suitable habitat)

• Direct removal of endangered species (to prevent government from imposing restrictions on the land, e.g., “shoot, shovel and shut up”)

• Increased harvest of endangered species to make money off their rarity

• Focus on individual species instead of ecosystem

There are perverse incentives structure implicit in much of our economic system

In the extreme… perverse business ideas like:

Even in less extreme examples, there is a perverse incentive simply because we do not pay for the actual value of the ecosystem services we use.

Externality: A consequence (positive or negative) of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

Externality: A consequence (positive or negative) of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

Externality: A consequence (positive or negative) of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved.

So, how can we motivate individuals, collectives, and policy makers to make more sustainable choices?

Example, Wyoming ranchers get a monetary incentive for planning adjacent conservation easements

Example, Wyoming ranchers get a monetary incentive for planning adjacent conservation easements

Another example: conservationists, scientists, rice farmers, and the public joining together to protect migratory shorebirds

Many of the examples we have discussed so far assume a political-social-economic system that is similar to what we have today.

But what if we (as individuals and societies) shifted some of the underlying assumptions?

What might be possible then?

Systemic commitment to ecological health…carbon neutrality

Systemic commitment to ecological health… reconciliation ecology

Designing new habitats for other species in the midst of where people live and work in the age of the Anthropocene

Systemic commitment to ecological health… alternate measures of prosperity

1972 king of Bhutan: “Gross National Happiness is more important than Gross National Product”

GNP instituted as the goal in the Constitution of Bhutan in 2008

What if it’s not your job to save the world?

We live inside of – and become - the stories we tell ourselves

The environment is there to use for human gain; Growth is good; We can fix problems primarily with technology

New and creative responses are needed to promote a Life-Sustaining Society; action must come from a deeper cultural shift; we are not separate or separable from each other, other life forms, and the Earth